The following are selected March transactions of Sweet Comfort, distributor of imported bed sheets, pillow cases and comforters. Its credit term is 2/10, n/30, FOB Destination. 124% VAT is included in all invoices. The company is VAT registered.
4 Purchased an aircon unit from Concepcion Industries at a list price of P9,000 less 5% trade discount, 2/EOM, n/60. Get invoice price and add 12% VAT.
6 Paid P1,344 for the delivery cost of the above purchase.
8 Sold merchandise to Susan Velasco in the amount of P19,040 on account. Delivery
cost paid in cash, P604.80.
10 Purchased 10 comforters from Hong Kong Sleepwell invoiced at 12,000 Hong Kong dollars. Hong Kong Sleepwell has a Philippine distributor. Exchange rate is P5.5 to a Hong Kong dollar. 12% VAT is to be added. Terms: 2/10, 1/20, n/30.
15 Received a check from Susan Velasco in total payment of her purchase.
19 Sold to David Company, on account, 5 Canadian bed sheets @ P1,680 each set. Freight cost paid for the delivery, P336.
20 David reported that an item in the shipment was defective. It was agreed that David would retain the item but will be credited for P560.
22 Paid Hong Kong Sleepwell for 5 comforters less the agreed discount. 25 Received a check for P5,500 from David Company as partial payment.
28 Paid Concepcion Industries the amount due on the purchase of March 4.
Required:
a. Journalize the above transactions. Open the customer's and supplier's cards.
b. Post to T accounts the accounts receivable and accounts payable entries.
c. Determine the balances and reconcile with the balances of the customer's and supplier's cards.